The club's debt now stands at £23m, of which £15m is made up of the bond issue taken up largely by directors (which includes the £6m of loans that were due to be repaid in 2008), £7m takes the form of bank loans and £1m is the overdraft. Thus £22m of the £23m is now long-term debt, reflected by the reduction of the overdraft from £9m to £1m.
If we get relegated next year the club's income could fall to £8m (perhaps £11m if we stay up). Out of this £1.2m has to be paid off our long term bank loan, making a total of £1.5m with interest. This leaves £6.5m (£9.5m if staying up) to pay wages and operating costs. I understand tghat the business rates on the stadiumn are £1m a year alone. If one adds in water, gas, electric, rent, equipment, depreciation these costs were over £11m alone in 2007/8.
Some of these costs could be cut, just as wage costs have already been, but it is going to taken drastic surgery to balance the books. Indeed, breaking even probably won't be achievable, but we can't afford big losses.